* API industry data show surprise jump in U.S. crude stocks
* Front-month U.S. crude closes below 200-day moving average
* For a technical view, click: []
* Coming Up: EIA U.S. inventory report at 1430 GMT
(Updates prices)
By Christopher Johnson
LONDON, July 28 (Reuters) - Oil slipped towards $77 per
barrel on Wednesday after an industry report of an unexpected
rise in U.S. crude stocks and a drop in U.S. consumer confidence
fuelled doubts about the pace of recovery in energy demand.
Traders awaited data from the U.S. Department of Energy on
oil inventories and refinery utilisation due to be released at
1430 GMT. []
U.S. crude for September <CLc1> was down 5 cents at $77.45
by 1150 GMT, after reaching an early intra-day low of $76.88 a
barrel. ICE Brent gained 10 cents to $76.23.
Prices touched $79.69 per barrel on Tuesday, their highest
in almost 12 weeks, boosted by Wall Street gains and strong
earnings by companies including DuPont and Co <DD.N>.
But U.S. crude futures, also known as WTI, fell sharply
after a report showed U.S. consumers in July were the least
confident about the economy since February because of worries of
a stagnant job market. []
The American Petroleum Institute said U.S. crude inventories
also posted a surprise increase of 3.1 million barrels last
week, compared with a forecast decline of 1.6 million barrels.
Those figures pushed U.S. crude down to $77.50 by Tuesday's
close, significantly well below the front-month contract's
200-day moving average.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic showing U.S. light crude oil futures front
month versus its 200-day moving average, click:
http://link.reuters.com/xav89m
For a graphic of the correlation between U.S. crude and the
S&P 500 Index, click: http://link.reuters.com/baw89m
For a graphic on the technical outlook for U.S. crude,
click: http://graphics.thomsonreuters.com/WT/20102807085210.jpg
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
RESISTANCE
"With trading volume at the lows of the year, continued
stock builds, weakening product cracks, we will remain very
cautious on any attempt to move above $80 per barrel on the wake
of the S&P," Olivier Jakob, consultant at Petromatrix, said.
"WTI moved back below the 200-day moving average and both
WTI and the S&P still need to prove that they can sustain that
line as a support rather than a resistance."
Energy Information Administration figures are forecast to
show U.S. crude oil stocks fell last week on lower imports and
possibly some reduced production because of a storm threat in
the Gulf of Mexico, a Reuters poll of analysts showed.
[]
Refined products stockpiles were forecast to continue to
show increases. For distillates, which include heating oil and
diesel, the forecast was for a gain of 1.8 million barrels, the
ninth consecutive weekly gain, while for gasoline, stocks should
be up 400,000 barrels, the fifth straight increase in the middle
of the U.S. summer driving demand season.
"Price-wise, given that most complexes are still on the top
end of the trading range, we expect to see further erosion from
here, especially if Wednesday's EIA numbers confirm the API
trends," said Edward Meir, senior commodity analyst at brokers
MF Global.
"However, we do not expect a sharp decline given that the
energy complex is within a critical time window weather-wise,
and prices therefore have the potential to turn on a dime."
The Organization of the Petroleum Exporting Countries (OPEC)
has for the past year and a half expressed a preference for
prices to remain stable around $75, saying that encourages
investment to sustain and increase production capacity and does
not threaten the economic recovery.
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by XXX
